Huerfano County Enacts Moratorium on Data Center Development Amidst Bluesky AI Plans
While social media incorrectly speculated about a new AI data center in Walsenburg, Colorado, due to an addition to an existing Lumen (Century Link) facility, Bluesky AI Inc. has purchased 36 acres in Huerfano County for a genuine 15-megawatt AI data center. Despite the land acquisition, Bluesky AI has not yet submitted permit applications, leading Huerfano County Commissioners to enact a moratorium on data center development amid public opposition concerning water and power grid impacts, pending the drafting of new regulations.
WALSENBURG, CO - Social media chatter incorrectly identified a recent 1,200 square foot modular addition to an existing Century Link data and fiber-optic hub near Walsenburg as a new AI data center. The addition, owned by Lumen (formerly Century Link), involved installing three prefabricated equipment shelters, fencing, and conduit, and was approved by a Huerfano County building permit. Lumen, which has expanded into "AI-era networking" and recently acquired Alkira, clarified its work is far more modest than large-scale data center projects.
Meanwhile, Utah-based Bluesky AI Inc. has indeed advanced plans for a 15-megawatt AI data center in the region. After a ten-month contract period, the company purchased a 36-acre parcel of land abutting Walsenburg’s Northlands for $248,000, with the deed filed on June 16. Trent D’Ambrosio, CEO of Bluesky AI, previously stated the acquisition reflected a commitment to AI compute while aligning with local economic development and environmental stewardship, citing Walsenburg's power availability and infrastructure readiness.
However, the Huerfano County Land Use office confirmed that Bluesky AI has not yet submitted any building permit applications or contacted county officials regarding the project. Exactly one week after Bluesky AI's land purchase, on June 23, Huerfano County Commissioners unanimously imposed an immediate moratorium on data center and AI development. Commissioner Jim Chamberlain initiated the motion, seconded by Commissioner Mitchell Wardell, who cited water protection and power grid concerns as primary motivators.
The decision was also influenced by a nearly 40-minute public comment session where numerous citizens voiced opposition to AI and data center development within the county. County Administrator Carl Young stated that the county would soon begin drafting regulations for data centers, acknowledging that current county code does not specifically address them. He indicated that large data centers would likely undergo a stringent "1041 process," a local permitting procedure in Colorado that allows counties to regulate major projects impacting areas of statewide interest, ensuring public hearings and mitigation of concerns.